Military Loans vs. Payday Loans

These days there’s a lot of information floating around about payday loans versus military loans. Here’s what you need to know about both products:

A payday loan is a short-term loan, cash loan. Normally, the consumer writes a post-dated check for the amount of the loan plus an interest fee. The lender then cashes the check at the pre-determined due date (which does vary, but usually around 14 days). Cash loans are fairly easy to qualify for; you need to be at least 18 years of age, a U.S. citizen, and be able to provide proof of employment. And, the benefit to this type of loan is that there’s no credit check required!

A military loan is explicitly designed for military service members. Therefore if you’re not serving in the US military and have not served in the past, you will not qualify for this type of loan. Military loans are categorized into several types: home leave assistance loans, bereavement loans, convalescent leave loans, and help loans. Depending on your individual situation, any one of these may be better suited for you. A help loan is probably the most comparable to a payday advance. Help loans are one-time, non-rollover loans for $500.  These have fixed-rates and four equal monthly payments.

Recession-Proof Your Family

Unless you’ve been living under a rock, you’re probably aware of the great recession that has plagued America. Even if you’re fortunate enough to still have your job, it’s always a good idea to have a financial plan in place- should something happen to you or a loved one. Most financial experts agree, you should have a minimum of 6 months worth of living expenses saved up in an emergency account. Don’t have one? Definitely- get started today. Here are a few easy ways to save:

1. Utility Bills. Go through each one and identify areas to save. For example, do you really need 150 cable channels? Or, could you get by with a basic cable service? Depending on your cable provider, this could save you about $50 per month.

2. Cut down on the places you commute to. Instead of driving to the store around the corner, is it possible to ride your bike? Just think: you’ll be saving gas, the environment- and be getting a great workout!

3. Avoid taking out unnecessary cash loans. These types of loans are very expensive. If you need cash loans for bad credit, consider your alternative choices first. For example, maybe you have a bunch of junk lying around? Why not have a garage sale? Although, it may seem like a pain- it will really pay off in the end.

Basic Budget Worksheet